Sales: According to the Mobile Area Association of REALTORS, January home sales in the area increased 14.2% year-over-year (Y/Y) from 317 to 362 closed transactions. Following seasonal trends, sales decreased 13% from December. Two more resources to review: Quarterly Report and Annual Report.

For all Mobile-area housing data, click here.

Inventory: Homes listed for sale decreased 57.4% from 1,194 listings one year ago to 509 in January. Months of supply dropped from 3.8 months to 1.4, reflecting a market where sellers generally have elevated bargaining power.

Pricing: The median sales price in January was $180,000, an increase of 18.5% from one year ago and an increase of 2.9% from December. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.

Homes sold in January averaged 38 days on the market (DOM), selling 18 days faster than in January 2020.

Forecast: January sales were eight units, or 2.3%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 354 sales for the month, while actual sales were 362 units.

New construction: The 19 new homes sold represent 5.2% of all residential sales in the area in January. Total sales increased 11.8% year-over-year. The median sales price in January was $290,400, an increase of 27.4% from one year ago and an increase of 3% from December.

NAR commentary: According to the National Association of Realtors (NAR), existing home sales nationwide increased 0.6% from December (seasonally adjusted annual rate). Sales increased significantly from one year ago, rising 23.7%. Sales prices continued to grow at higher rates than before the pandemic, rising 14.1% year-over-year.

Lawrence Yun, chief economist for NAR, said, “Home sales continue to ascend in the first month of the year, as buyers quickly snatched up virtually every new listing coming on the market. Sales easily could have been even 20% higher if there had been more inventory and more choices. Home sales are continuing to play a part in propping up the economy. With additional stimulus likely to pass and several vaccines now available, the housing outlook looks solid for this year.”

ACRE commentary: Home sales in Alabama increased for the eighth consecutive month in January, rising 17.2% year-over-year. The strong rebound in sales activity during the second half of 2020 has extended into 2021, with 21 of 24 markets in the state recording year-over-year gains in home sales during January. Buyers are incentivized by low mortgage rates, increasing their buying power during a time of rising sales prices, which increased 11.9% Y/Y in January. Sales prices continue to grow at a faster rate than before the pandemic, which could motivate more potential sellers to list their homes going forward. Statewide inventory, however, continues to tighten, declining almost 40% year-over-year, reaching an all-time low of 10,815 listings.

Click here to view the entire monthly report.

The Mobile Residential Monthly Report is developed in connection with the Mobile Area Association of Realtors to better serve area consumers.

Editor’s note: All information in this article reflects data provided to the Alabama Center for Real Estate for Jan. 1-31. Thus, the performance represented is historical and should not be used as an indicator of future results, particularly considering the impact of COVID-19 on the housing market.